The U.S. is currently grappling with a massive labor shortage. Due to early retirements, child care needs, and potential COVID-19 risks at work, the pandemic has pushed millions of Americans out of the workforce – and they have been slow to return.
Since the pandemic began, the labor force participation rate – defined as the share of Americans 16 and older either working or looking for work – has been stuck at multi-decade lows. The most recent data from the Bureau of Labor Statistics reveals a staggering disconnect – the number of open jobs nationwide outnumbers the number of Americans looking for work by nearly 4.3 million.
Businesses nationwide are feeling the pinch. The labor shortage poses an existential challenge for many small businesses. Even major companies like McDonald’s, Starbucks, and Macy’s have been forced to reduce their hours of operation. Broader implications include worsening supply chain issues and slowed economic growth.
As daunting as the challenge is at a national level, in some states, the problem is even worse.
Using data from the BLS, 24/7 Wall St. identified the states where businesses are running out of workers. States are ranked by the number of open jobs for every unemployed resident, or the ratio of unfilled jobs to job seekers. Nationwide, there are 1.7 unfulfilled jobs for every out-of-work job seeker. Depending on the state, this ratio ranges from 1.1-to-1 up to 6.0-to-1.
Closing the gap between supply and demand for labor will likely require an influx of people from the sidelines either joining or re-joining the labor force. This is especially true in states with low unemployment rates, where the ratio of unfilled jobs to job seekers tends to be the worst. Here is a look at the state with the highest unemployment in America.
Click here to see the states where businesses are running out of workers
Click here to read our detailed methodology